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FAQs

The Standard Risk Measure (SRM) is a guide developed by the Financial Services Council (FSC) and The Association of Superannuation Funds of Australia (ASFA) that outlines the likely number of negative annual returns expected over any 20 year period.

The purpose of the SRM is to provide a standardised labelling system to assist investors in comparing investment options across providers, as shown below in Figure 1, FSC/ASFA Standard Risk Measure Classifications.

Risk Label Estimated number of negative annual returns over any 20 year period
Very Low  Less than 0.5
Low  0.5 to less than 1
Low to Medium  1 to less than 2
Medium  2 to less than 3
Medium to High  3 to less than 4
High  4 to less than 6
Very High  6 or greater


Source: FSC/ASFA Standard Risk Measure Guidance Paper for Trustees, July 2011

 

We have adopted these risk rating guidelines and applied them to our products, as highlighted in Figure 2: InvestSMART Group Investment Products' SRM:

InvestSMART Group Investment Products SRM

It should be noted, however, that the SRM is not a complete assessment of all forms of investment risk. For instance, it does not detail what the size of a negative return could be or the potential for a positive return to be less than a member may require to meet their objectives. As such, it should be used as a guide and as with any investment, investors should ensure they are comfortable with the risks and potential losses associated with their chosen investment option(s). Any information should be considered general in nature and before making any investment decisions, please ensure that you read all relevant disclosure documents related to that product.

InvestSMART is required to pay out any income plus franking in the financial year it is earned. The Fund is expected to pay two distributions each year – in February for the December half year and in July for June half year. We will advise franking details with each distribution and provide a tax statement at the conclusion of the Financial Year. InvestSMART expects that distributions of income will be 80-100% franked.

We expect the fund to trade at NAV (Net Asset Value), e.g. if the NAV of the fund is $2.60, we expect to see the bid price at $2.595 and the offer price at $2.605 on the ASX. As the issuer of the fund, InvestSMART will make sure that the ASX prices accurately reflect the NAV.  We will also publish on our website an “indicative” NAV throughout the trading day that will estimate the NAV every 15 seconds.

The distribution will be twice a year after the end of financial year and calendar year. The distribution is made up of all income received by the Fund. This includes dividends paid, interest earned on cash and realised capital gains.